Exam 5: Cost-Volume-Profit Analysis and Break-Even

A company that makes audio computer input devices has calculated their revenue and costs as follows for the most recent fiscal period: Costs: The company has a target level of profitability of $35,000 per fiscal period.What sales dollar volume do they have to achieve in order to achieve their goal?

Calculate the contribution margin,if the variable cost per unit to produce a microwave is $39 and a contribution rate is 45%.

A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units. a)Calculate the break-even point b)Draw a detailed break-even chart. c)Calculate the break-even point (in units)if fixed costs are reduced to $7020.00 d)Calculate the break-even point (in dollars)if the selling price is increased to $78.00

A company that makes customized pens has calculated their revenue and costs as follows for the most recent fiscal period: Costs: What are the company's fixed costs per fiscal period?

A local toolmaker makes the best hammers on the market.The head of the hammer costs $12.11 and the handle costs $4.37.It takes 1.4 minutes to assemble the hammer and the hourly cost is $90.00 for assembly time.The company has fixed operating costs of $22 310 per month.They sell the hammers for three times their total variable cost.The company wants to make a monthly profit of $5000.How many hammers must they sell?

A local restaurant has the best meals in town.The average variable cost per meal is $22.74 and the desserts are $5.24.Only half of the patrons order desserts.The restaurant has fixed operating costs of $112 714 per month.They sell the meals and desserts for four times their average variable cost per meal.They company wants to make a monthly profit of $75 000.How many meals must they sell?

Last year,Terrific Copying had total revenue of $475 000,while operating at 60% of capacity.The total of its variable cost is $150 000.Fixed costs were $180 000.What is the expected revenue this year at full capacity?

A pen manufacturer makes luxury pens.The pen case costs $7.26 each,the ink holder costs $1.26 each,the spring costs $.07 each and the velvet pen case costs $0.91 each.The plant has general and administrative costs of $55 000 and fixed selling expenses of $37 500.The pens sell of $39.95 each.Plant capacity is 4 000 pens per period.At what percentage of capacity is the break-even point?

Last year,Terrific Copying had total revenue of $475 000,while operating at 60% of capacity.The total of its variable cost is $150 000.Fixed costs were $180 000.What is Terrific's contribution rate?

Given the following chart,calculate the cost function.Interpret the function to calculate variable costs and fixed costs:

The Excellent DVD Company sells DVDs for $62 each.Manufacturing cost is $22.70 per DVD; marketing costs are $7.75 per DVD; and royalty payments are 15% of the selling price.The fixed cost of preparing the DVDs is $227 300.Capacity is 20 000 DVDs. a)Draw a detailed break-even chart. b)Compute the break-even point c)Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD. d)Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.

The operating budget of the Omega Twelve Company contains the following information. a)Draw a detailed break-even chart. b)Compute the break-even point as a percent of capacity. c)Determine the break-even point in dollars if fixed costs are reduced by $11 200 while variable costs are changed to 62% of sales.

A company that makes basketballs has calculated their revenue and costs as follows for the most recent fiscal period: Costs: What are the company's fixed costs per fiscal period?

A company that makes optical computer input devices has calculated their revenue and costs as follows for the most recent fiscal period: Costs: What is the break-even point in sales dollars?

Samsung sell refrigerators at $900 per unit.Their variable cost is estimated to be $550 per unit and their fixed costs are estimated to be $8.75 million per annum.Calculate the minimum number of units,Samsung should produce every year to make a profit?

An electrician charges a flat fee of $90 for a home service call.In addition he charges $25 for every 20 minutes as labour cost.Draw a graph to show the total charge against the time in hours.Calculate the slope of the line.

Elaine's business budget included sales of $350 000 and fixed costs of $52 600.If the total contribution margin for the business was $125 000,what are the sales needed to break even?

A local health care facility has fixed costs per month of $187 400.They also have patient costs of $4.15 per day per patient for linen and cleaning,medication costs are $23.32 per patient per day and lab tests cost $75.61 per patient per day.The government is considering allowing the health care facility to charge each patient and amount to recover his or her costs and to make a "profit" of $15 000 per month.The health care facility averages 690 patients per month.The VP-Finance for the facility wants you to calculate the daily rate charge per patient.Your answer is:

Priest and Sons,a local manufacturer of a product that sells for $13.50 per unit.Variable cost per unit is $7.85 and fixed cost per period is $1 220.Capacity per period is 1100 units. Perform a break-even analysis showing a)an algebraic statement of b)a detailed break-even chart.